The decline suggests that Belgian consumers have grown slightly more pessimistic about economic conditions and their own financial outlook compared with the previous month. While still within a relatively moderate negative range, the additional drop underscores lingering concerns that may weigh on spending and broader economic momentum in the coming months.

The indicator measures how prices have changed compared with the same month a year earlier, showing that while UK property values are still rising, the pace of growth is weakening. The previous reading reflected the change in prices compared with the same month a year earlier in the prior period, whereas the latest figure captures the year-on-year move for the newly reported month.

The moderation from 1.4% to 0.9% suggests a cooling in momentum in the UK housing market, which investors and policymakers will be watching closely for signs of shifting demand, affordability pressures, or changing financing conditions in the sector.

By contrast, the goods deficit widened to EUR 2.342 billion from EUR 2.199 billion, as imports (EUR 6.507 billion) continued to exceed exports (EUR 4.164 billion). The secondary income deficit also increased, rising to EUR 0.447 billion from EUR 0.316 billion a year earlier.

Selling pressure intensified after CATL slumped about 10%, hurt by slower third-quarter profit growth amid intensifying competition and softer Chinese auto sales. Technology stocks remained under pressure on worries about the payback from heavy AI-related capital spending and persistently high financing costs, even as renewed optimism over AI server demand followed Super Micro Computer’s upgraded revenue outlook.

At the same time, investors continued to assess China’s economic trajectory and the likelihood of additional policy support, while corporate earnings releases and expectations for US interest rates stayed firmly in focus.

Among individual movers, Pop Mart dropped 5.7%, Semiconductor Manufacturing International Corporation fell 2.3%, and Tencent declined 3.8%. On the upside, Lenovo gained 2.9% and Z.AI Co. added 2.0%, offering some limited support to the broader market.

In light of these developments, the central bank revised its 2026 inflation forecast up to 5.4% from 5.2%. It now expects inflation to average 3.5% in 2027 and then gradually converge toward the 3% target in the second half of that year.

Economic activity has been stronger than anticipated, with real GDP growth averaging 7.6% in the first eight months of 2026. Reflecting this resilience, the Bank raised its 2026 GDP growth forecast to 7.2% from 6.5%.

The Bank cautioned that a further escalation of tensions in the Middle East could drive energy prices and inflation even higher, potentially necessitating additional interest rate increases. Conversely, an easing of geopolitical risks and a decline in energy prices could create room for a faster normalization of monetary policy.

Deflation in communication moderated slightly (-0.7% vs. -0.8%), while inflation held steady for alcoholic beverages and tobacco (7.1%), education (35.7%), and miscellaneous goods and services (15.7%). By contrast, price growth slowed for food and non-alcoholic beverages (10.0% vs. 11.7%), health (7.3% vs. 7.4%), and recreation and culture (43.6% vs. 45.7%). Month on month, consumer prices rose 1.4%, the same pace as in the previous month.

To support liquidity, the board cut the reserve requirement ratio by 1 percentage point to 8% effective November 1, with a further reduction to 7% from December 1. The move is expected to inject about IDR 190 trillion into the financial system. Governor Destry Damayanti noted that the cumulative 100-basis-point rate hikes earlier this year had helped anchor inflation expectations, even as El Niño continues to exert pressure on food prices.

At the same time, U.S. stock futures advanced as worries over AI-related investment cooled. In Jakarta, gains were led by healthcare, property, consumer non-cyclical, and infrastructure stocks. AKR Corp. surged 6.2%, while Indofood Sukses Makmur gained 4.8% and Indosat Tbk rose 4.1%. The four major banks added between 0.3% and 1%.

On a year-over-year basis, September’s figure reflects a marginal acceleration in inflation compared to the previous month, which had also been measured against August a year earlier. The comparison underscores a still-contained inflation environment, with no sharp breakout in price pressures despite the slight uptick.

The continuity around the 4.5% mark may offer some comfort to policymakers and markets, suggesting that while inflation is edging higher, it remains broadly stable when viewed against the same period a year ago—and still firmly within the central bank’s comfort zone.

The marginal decline in the core CPI — which excludes more volatile price components — suggests underlying inflation pressures remained contained heading into the final quarter of the year. The back-to-back year-over-year comparisons indicate that, while price growth is still present, it is moderating on a core basis.

The September increase suggests a slight firming in underlying inflation momentum after that pause, as the latest “actual” figure reflects price changes from August to September, while the “previous” figure captured the change from July to August. Although the move is small, the shift from 0.0% to 0.2% month-over-month will be closely watched by markets and policymakers for any signs of building inflationary pressure beneath the headline data.

On a month‑over‑month basis, the “actual” September reading reflects the change in prices compared with August, while the “previous” figure captures August’s change relative to July. The move from 0.0% in August to 0.4% in September suggests that price pressures have resumed after a temporary stall, indicating a modest re-acceleration in short‑term inflation dynamics within the South African economy.

The August figure also reflects a year-over-year improvement, as the current reading is assessed against the same month a year earlier. Similarly, the July 2026 result was evaluated on a year-over-year basis, offering a consistent comparison of Greece’s external balance over time. While the detailed drivers of the shift were not disclosed, the pronounced jump in the surplus underscores a markedly more favorable current account performance as the third quarter progresses.

At the same time, public sector net borrowing climbed to £24.5 billion, higher than a year earlier and above market expectations. Borrowing between April and September reached £97.8 billion, overshooting the Office for Budget Responsibility’s March projection by £6 billion. Despite this deterioration in the fiscal position, some major investors expect the forthcoming budget to stress fiscal discipline, which could underpin demand for gilts.

In addition, resilient economic data — including a decline in unemployment and an unexpected expansion in GDP — have strengthened expectations of further monetary tightening, with markets currently pricing in a 25-basis-point rate increase in November.

Nonetheless, the broader outlook remains pressured by persistent oversupply, even as Indonesia enforces stricter mining quotas. The International Nickel Study Group now projects a 19,000-tonne global surplus in 2026, reversing its earlier forecast of a 32,000-tonne deficit. The surplus is seen widening further to 70,000 tonnes in 2027.

Market sentiment is also dampened by slower-than-expected growth in battery demand, partly reflecting increased competition from lithium iron phosphate chemistries. These trends reinforce concerns that supply growth will continue to outstrip consumption. The durability of the current price rebound will hinge on whether the proposed production cuts are implemented and translate into substantial reductions in actual output.

At the same time, to strengthen domestic liquidity, the board lowered the reserve requirement ratio by 1 percentage point to 8% effective November 1, with a further cut to 7% from December 1. This move is expected to inject around IDR 190 trillion into the financial system. Governor Destry Damayanti noted that the cumulative 100-basis-point rate hikes implemented earlier this year have helped anchor inflation expectations. Internationally, the U.S. dollar index steadied after hitting a three-week low, supported by rising oil prices that reignited inflation concerns and bolstered safe-haven demand for the greenback.

At the same time, current finished goods inventories increased to 100.4 from 96.9. Fixed investment expenditure expectations improved to 107.2 from 104.9, and expectations for total employment over the next three months inched up to 104.5 from 104.4.

Sector-wise, banks, miners, defence and aerospace, and consumer stocks dragged the index lower. HSBC slipped 1%, Lloyds Banking Group declined 1.2%, and Rio Tinto fell 2.8%. Fresnillo lost more than 2% after reaffirming its full-year silver production guidance despite reporting lower year-on-year output. Rolls-Royce and BAE Systems also retreated. In contrast, utilities outperformed, with SSE advancing 1.8% and National Grid up 1.6%.

Consumer inflation accelerated to 5.54% in September, and many economists now expect price pressures to breach the Reserve Bank of India’s upper tolerance band in October. The RBI’s recent shift to a “calibrated tightening” policy stance has further cemented expectations of additional monetary tightening, with swap markets factoring in roughly 100 basis points of rate hikes over the next 12 months, including a possible 50-basis-point increase in December. Investors are closely watching for the minutes of the RBI’s October policy meeting, due later on Wednesday, for clearer guidance on the future path of rates.

Public sector net borrowing rose to £24.5 billion, overshooting forecasts ahead of next week’s Budget. These figures add to signs of underlying resilience in the UK economy, including an unexpected fall in unemployment, 0.1% GDP growth in August, and a narrower trade deficit.

Markets are now fully pricing in a 25-basis-point increase in Bank Rate in November. The Bank of England remains the only major central bank yet to begin a tightening cycle. However, recent comments from Governor Andrew Bailey, who indicated that a prolonged war could intensify pressure on policymakers to act, suggest that the first rate hike may be close.

Within consumer goods, non-durable consumer goods utilization increased to 73.1% from 72.5%, while durable consumer goods rebounded to 68.5% from 66.4%. Capacity utilization in investment goods also inched up, rising to 73.4% from 73.1%, signaling improved use of capacity in capital goods production.

In contrast, intermediate goods utilization edged down slightly to 74.4% from 74.5%, though it remained the highest rate among the main industry groupings.

Earlier this year, BI raised its policy rate by a total of 100 bps in May and June, bringing it to its highest level since April 2025 in an effort to attract foreign capital inflows and stabilize the rupiah. Annual headline inflation quickened to a three-month high of 3.28% in September, even as core inflation moderated to 2.84%. BI expects inflation to stay within its 2.5% ± 1% target range and has maintained its 2026 GDP growth forecast at 4.9%–5.7%.

In addition to holding the key policy rate, BI kept the rate on its lending facility at 6.5%, while raising the overnight deposit facility rate (DFR) by 25 bps to 5%.